Freight Management Savings Case Study

Goal

Large manufacturer sets a target of $2.5M in annual implemented savings established, with a longer-term objective of delivering at least $7.5M without structural changes.

Discovery

IntelliTrans engages in a detailed discovery process with the customer to understand all aspects of their distribution, transportation, and warehousing, including:

  • Analyzing the high-level, current state of all aspects of the company's logistics functions.
  • Sizing potential opportunities in a rational priority.
  • Generating high-level, future road map.

Execution

  • Least-cost carrier selection
  • Modal conversion and selection
  • Warehouse optimization
  • Fuel surcharge management
  • Detention & demurrage management
  • Invoice auditing
  • Dedicated operations for local and short haul markets
  • Truckload and rail carrier benchmark and RFQ management
  • Continuous moves and dedicated routes
  • Order consolidation
  • Optimal sourcing - Inbound and outbound
  • Network optimization and redesign

On-Going Freight Management

    Real-Time Support - compliance management and carrier commitment management

    • EDI integration and support
    • Carrier approval and training
    • Monitor lane allocations, contract carriers, rates, tendering, interfaces and diagnostics

    Analytics and Metrics

    • Least-cost mode and carrier utilization
    • Monthly KPIs - mill, mode, carrier
    • Rate benchmarking using TransCore Rate Index tools to ensure competitive rates
    • Reports are available for all shipments, regardless of the mode, in IntelliTrans GVP

    Ad-hoc Projects

    • Bids and RFQs – all modes
    • Rate analysis – all modes
    • Fuel surcharge audit and analysis
    • Extend KPIs to include next level of analysis on shipments:
      • Reason codes on deviation from plan
      • Definition of technical limit based on negotiated rates and market indicators
      • Load factor by equipment type
      • Optimal mode analysis

    On-site Implementation and Training

    • Weekly visits to facilities to meet with personnel
    • Support and analytics
    • Training and compliance expectations
    • Monitor to ensure continued realization of prior savings across all facilities
    • IT testing / integration to ensure swift and high-quality implementation
    • New development / features
    • Trailer pool and equipment tracking and utilization

    Result

    Total Annual Savings: $12.4MM - almost $10MM more than expected!